|
ValuJet on comeback trail
|
 |
May 9, 1997: 5:36 p.m. ET
One year after fatal crash, airline is on slow, steady road to recovery
From Correspondent Dan Ronan
|
ATLANTA (CNNfn) - Sunday marks the one-year anniversary of the ValuJet Airlines Flight 592 crash in the Florida Everglades, killing all 110 people on board.
Since then, the carrier has embarked on a slow and steady climb back to recovery that has emphasized maintenance and safety. After being grounded by the Federal Aviation Administration for 15 weeks following the crash, the carrier was permitted to return to the skies in late September.
In terms of cities served, employees and the number of jets, ValuJet is about half the airline it was a year ago. It's also losing money --$60 million in the past 15 months. Still, ValuJet has $138 million in the bank and is expecting a $38 million tax refund. The company says it will turn a profit this fall.
Analysts surveyed by First Call are predicting a loss of 12 cents a share for the company's second quarter ended June 30 and a 2-cent a share profit for the quarter ended September.
As he walks through Atlanta's Hartsfield International Airport meeting passengers and employees, ValuJet Chairman Lewis Jordan says he feels good about the carrier's future.
However, things are quite a bit different these days. In contrast to its hectic expansion pace before the crash, the company is focusing less on expansion and more on ensuring it is operating in a safe and prudent manner.
"Measured growth, conservative growth at this time is more appropriate under the circumstances," said Jordan.
ValuJet and the FAA both say they have learned lessons from the crash and the government-ordered safety shutdown.
"ValuJet has met and meets our very high standards of aviation safety and have continued to meet additional standards that we require as a result of the consent order," said Guy Gardner, the FAA's associate administrator for regulation and certification.
The FAA says ValuJet must prove the air worthiness of each plane added to its fleet. Government inspectors can also order any repairs they feel are necessary. And when ValuJet wants to fly into a new city, the FAA sends its inspectors there first.
"The government is really watching ValuJet now, and I think it's the safest airline to fly," said one passenger.
"I wouldn't fly it if I didn't feel safe. They're under more scrutiny than anybody at this time," said another.
Investors still haven't flocked back to ValuJet. Its shares closed Friday up 5/16 to 7-5/16, well below the 52-week high of 18.
But the number of passengers flying on ValuJet is gradually increasing, and company officials hope that by this summer load capacities will be back up to pre-crash levels.
Part of ValuJet's new, more disciplined approach to business includes adding flights to medium-sized cities such as Canton, Ohio, and Flint, Mich., where there's less competition with larger airlines.
The company is also winning back customers through discount tickets and increased reliability. Earlier this week, ValuJet reported that 78.6 percent of its flights arrived within 15 minutes or less of schedule.
Agnes Huff, an airline consultant at Fraser and Young, said ValuJet's on-time numbers are now the highest in the industry. She's convinced ValuJet is taking the right approach. (161K WAV) or (161K AIFF)
ValuJet said it plans to fly a normal schedule on Sunday. No public ceremony to remember the crash is planned.
|
|
|
|
|
 |
|
